Abstract:
The purpose of this study was to describe the practices of financial management in
government secondary schools of Jimma Zone. To this end, basic questions were
formulated. The research questions emphasized on What are the major problems
associated with financial management practices in secondary schools?, How do principals
manage the funds available to them?, What is the practice of school principals for
financial accounting?, What are the practices of the auditing system in Jimma zone
government secondary schools?, What are the major sources of funds for the management
of secondary schools? And also focused on the challenges prevailing for implementation.
To conduct this study, the descriptive survey method was employed. One Zone and eight
Woreda Education Office coordinators were selected as a sample by purposive sampling
technique. From the total of 20secondary schools 8(40%) were taken as a sample by using
the Multistage sampling method through stratified sampling technique. Then, from the
sample schools, 53 administrative workers were also included as samples by using
purposive sampling technique. Furthermore, Out of 204 secondary schools teachers in
eight selected Woredas the total of 102 secondary school teachers were selected through
stratified random sampling techniques by considering their proportionality. A
questionnaire was the main instrument for data collection. Interviews and document
analysis were used to substantiate the data gathered through questionnaires. The
percentage and chi-square were utilized by using SPSS v.16.o to analyze quantitative data
gained through the questionnaires. The qualitative data gathered during the interview
sessions and document analyses were analyzed using narration. The result of the study
indicated that,among other things, that:(1) The problems associated with financial
management is the process of budget utilization is not appropriate and budget allocation is
doesn`t coincide with the need of the schools,(2)The practices in managing the available
funds, principals did not spend funds available in line with planned objectives,(3) The
major sources of funds for the management secondary schools come from the federal, state
and local government , (4) The practices of financial accounting the principals investigate
every imbalance’s of staff found waiting , and (5) Budget is not transfer from one head to
the others. The study suggested that there is a need for efficiency in workers, training for
